Hyperion Aviation launches financing for aircraft leasing

Hyperion Aviation has launched a new financing platform, Hyperion Aero Capital, to provide funds for long-term leased business jets and cargo aircraft.

Eric Weisskopf, MD, Hyperion said the new platform aims to close a gap in financing for business jets. The new platform, which has “worked effectively for real estate and renewable energy transactions” will offer investors and lessors a “dedicated financing structure”.

Hyperion said that financing for aircraft has become increasingly fragmented as traditional lenders have retreated to more vanilla financing (involving call or put options), while the private aviation sector continues to grow. The platform will allow retail investors an opportunity to fund business aviation for the first time, according to the company. “The gap in financing for cargo and business jets is often unfulfilled because of the smaller number of aircraft, which tend to be second hand,” said Weisskopf.

Hyperion Aero Capital expects investors for the business jet funding to comprise current institutional investors, including bank debt, its founder Scott Levy told Corporate Jet Investor (CJI). The company aims to attract investors refocusing on alternatives through listing on the Frankfurt Stock Exchange. Hyperion told CJI that listing the company will make liquidity available to investors through a secondary market. 

The company said a volatile stock market, four-decade high inflation and raising interest rates and geopolitical tensions have stunted the market. But investors will be able to refocus and diversify their portfolios through Hyperion’s financing model.

The founder said they expect the split for financing to be about 30% business jets, with the remainder focused on cargo, as the volume of it is increasing as China opens up again.

Levy said: “Investors will be able to access a secure, insurable real economy asset which will provide above market returns without the volatility associated with the current market, while lessors will find a dedicated team and a single point of contact for financing assets which mainstream banks find difficult to finance.”